There appears no reason at present why conference cannot begin at
The Hague early August. This allows ample time for restoration of
the Republic at Djokjakarta and a further month for ratification
by the Republican Government of results of negotiations and for
inter-Indonesian conference. Responsible Dutch Officials agree
that early August is a likely target date.

2. I agree that it is important that Conference should have made
reasonable progress before next session of the Assembly. Delay at
this stage is particularly dangerous since failure to restore the
Republican Government seems to be-
(A) Destroying Indonesian confidence in the Dutch intentions;

(B) leading to further unrest and disturbances.

The stage could be reached where the Republican leaders may not
consider it worth while to accept responsibility for law and order
in Djokjakarta.

3. The conclusion of the Commission's Military Executive Board
based on reports from Military Observers for period ending late
May or early June is that there has been 'an increase in guerilla
and-or terrorist activities in practically all areas of Java and
Sumatra. As a result of this the Military activities of the
Netherlands forces have also shown an increase'.